Atlantic Power Corporation has announced a one-year extension of its Calstock power purchase agreement (PPA) and a final settlement of the insurance claim for its Cadillac plant.
Calstock is an approximately 35 MW biomass plant in Ontario, Canada. The offtaker under the PPA is the Ontario Electricity Financial Corporation. The PPA was originally due to expire in June 2020 but was extended to December 2020 on existing terms.
The second extension, also on existing terms, runs to 16 December 2021. The extension provides the provincial government additional time to consider future options for addressing mill waste in the province, including a potential new PPA for Calstock. If the company is successful in securing a new contract, the extension could be terminated early.
Joe Cofelice, executive vice-president of commercial development for Atlantic Power, said: “This extension was made possible by the Ontario Government’s commitment to support the forestry sector and the economy of Northern Ontario, and the strong support of all stakeholders involved in the process, including our Calstock team, the local communities and mills, unions, and the Ontario Forest Industries Association.
“We look forward to further engagement with government and other stakeholders regarding a potential new contract for Calstock.”
Earlier this month, Atlantic Power also executed a final statement of its insurance claim for the Cadillac plant, under which it will receive the final payments from the insurers, totalling approximately $10.1 million (€8.3 million).